News
Sumanthiran questions rationale behind raising VAT to 18 % instead of raising withholding tax
By Saman Indrajith
TNA Parliamentarian M.A. Sumanthiran said yesterday that the government had agreed to provide copies of the Technical Assistance Reports compiled by the International Monetary Fund (IMF) to Opposition party leaders on request.
Sumanthiran, who was the only member of the Opposition to attend a multi-party discussion with the IMF, on the invitation of President Ranil Wickremesinghe, said that he had accepted the invitation extended by the President to Opposition party leaders.
“I raised some of our concerns. Firstly, the absence of transparency. The IMF provides Technical Assistance Reports to the government. These reports contain analysis on why these recommendations are made. They have so far not been made public. Today, it was agreed that copies would be provided to me and to other Opposition party leaders, too, on request,” Sumanthiran told The Island.
“With this we can see if these recommendations have an analytical basis or not. Upon studying the reports, we can say whether to support the IMF programme or not. We can see at the moment that the IMF programme is not beneficial to the poor of this country.” Sumanthiran said that he had questioned the rationale behind certain revenue-raising measures, such as the decision to increase the VAT to 18% instead of raising the withholding tax rate, which would have had a more immediate impact on revenue generation.
Sumanthiran said that he had highlighted the government’s failure to address 15 prior action items identified in the IMF programme, which were supposed to be completed by February 2024. In response, the government cited discussions with the IMF that resulted in time extensions for these actions,
The main Opposition SJB and the JVP/NPP boycotted the meeting.
Meanwhile in a statement, the President’s Media Division said that during the discussions, Secretary to the Treasury Mahinda Siriwardana had provided insights into the ongoing negotiations with bilateral creditors, commercial creditors, and ISBs, with an optimistic outlook towards completing the process by the end of June this year.
Central Bank Governor Dr. Nandalal Weersinghe highlighted the government’s efforts to adhere to the recommendations outlined in the Governor’s diagnostic report, emphasizing the commitment to a structured roadmap for implementation.
President Wickremesinghe affirmed the government’s willingness to make these technical assistance reports available to the members of Parliament and invited Sumanthiran and other Opposition members to attend a meeting and engage with the IMF to further discuss the proposals.
In response, Sumanthiran expressed his readiness to participate constructively in the dialogue, pledging support for constructive measures while highlighting areas that warrant attention and rectification.
Also present at the meeting with President Ranil Wickremesinghe were Prime Minister Dinesh Gunawardena, Leader of the House Susil Premajayantha, State Ministers of Finance Shehan Semasinghe and Ranjith Siyambalapitiya, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka and Secretary to the President Saman Ekanayake, according to the PMD.
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Sun directly overhead Madampe, Thorayaya, Thotagamuwa, Rattota and Kalavanchikudy about 12.09 noon today (03)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (03) are Madampe, Thorayaya, Thotagamuwa, Rattota and
Kalavanchikudy about 12.09 noon.
News
22A: SC urged to suspend hearing, appoint full bench
Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.
Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando have also been named as respondents.
The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.
The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.
The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.
The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.
Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.
After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.
News
Govt. seeks NATO assistance
Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).
According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.
This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.
During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.
The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.
Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.
Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.
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